The Co-operative Group's food business has announced a restructure that includes a number of redundancies.

It follows a comprehensive review prompted by what it refers to as 'extreme challenges in the market'.

The comprehensive review takes in the commercial, supply chain, stores, finance, property, human resources and farms functions and it has already been announced that eight senior managers are to leave the business under the new structure.

The Co-op said more redundancies will follow, though it is not able to confirm how many until work has been completed to finalise the restructuring.

In a letter to staff, acting chief executive of food Sean Toal said: “In common with other UK food retailers, we are continuing to face very extreme challenges in a market where customers are spending less as a consequence of the current economic climate.”

He added: “It is no exaggeration to say that our business is experiencing some of the toughest trading conditions in recent history and this is impacting on our financial performance.”

In response, the Co-op is devising a new operating model focussed on driving efficiency and removing duplication of tasks.

Among the senior staff who are leaving the business are Kay Wheelton, head of commercial trading, Helen Bridgett, head of commercial, strategy and planning, and Paul Knowles, head of logistics support and development.

The Co-op said work would continue on how best to make structural changes to the business and staff would be briefed on its progress at the end of February.

The review does not affect customer facing staff in food stores and depots.

Mr Toal added: “Whilst we are going through a difficult and challenging period at present I believe we will emerge stronger and better able to serve our customers and members both in the short term and when the economy does finally pick up.”

*Do you receive the MEN business bulletin? Take the hard work out of keeping up with Manchester business news and sign up for the twice-daily email –